Understanding Revenue Bills In The Constitution

what is a revenue bill in the constitution

The Origination Clause, sometimes called the Revenue Clause, is Article I, Section 7, Clause 1 of the U.S. Constitution. The clause states that all bills for raising revenue must originate in the House of Representatives, but the Senate may propose or concur with amendments. The Origination Clause was intended to ensure that the power of the purse is possessed by the legislative body most responsive to the people. However, the British practice was modified in America by allowing the Senate to amend these bills. The meaning and application of this clause have evolved through practice and precedent since the Constitution was drafted.

Characteristics Values
Name Origination Clause, sometimes called the Revenue Clause
Origin Stemmed from British parliamentary practice
Purpose Ensure that the power of the purse is possessed by the legislative body most responsive to the people
Application All bills for raising revenue must start in the U.S. House of Representatives
Amendment The Senate may propose or concur with amendments, as in the case of other bills
Ruling The Supreme Court has ruled on Origination Clause matters, adopting a definition of revenue bills that is based on two central principles
Enforcement The House's primary method for enforcement is through a process known as "blue-slipping"
Scope Does not include bills for other purposes, which incidentally create revenue

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The Origination Clause

The typical Origination Clause challenge involves a federal law that requires a person to pay a particular sum. These sums have gone by various names in statute, including a tax. The person challenging the payment requirement focuses on Congress’s consideration of the bill that became law with the payment requirement. The challenger alleges that this bill was one for raising revenue within the meaning of the Origination Clause and that the action of the Senate is what first gave the bill its revenue-raising character.

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The Seventeenth Amendment

The 17th Amendment, ratified in 1913, was one of the first amendments of the Progressive Era and fundamentally changed the government and political system of the United States. It also affected the separation of powers by adjusting the Senate's relations with the House of Representatives, the presidency, and the judiciary. As for the relationship between the Senate and the House, after 1913, senators could now claim to be the people's choice, as they could not before. This claim to a mandate from the people is powerful political capital that was now enhanced for senators.

Regarding the relationship with the Judiciary, the Supreme Court remained the only branch with no direct election for office after the passage of the 17th Amendment. The amendment also shifted the balance of power towards the federal government and increased democratic participation and transparency in the political process. Interestingly, since 1944, every Democratic Party Convention, excluding one, has nominated a current or former senator as its vice-presidential nominee.

In terms of the power between the Senate and the presidency, the 17th Amendment established senators as a platform for the presidency. Before the Civil War, eleven out of fourteen presidents came from the Senate. After the Civil War, most presidential candidates came from influential state governorships. However, after the passage of the 17th Amendment, the trend returned to senators, making candidates more aware of national issues and sharpening their electoral skills and public visibility.

The Origination Clause, which is part of the procedures that Congress and the President must follow to enact a law, states that all bills for raising revenue shall originate in the House of Representatives. The Senate may propose or concur with amendments as on other bills. This ensures that persons elected directly by the people have initial responsibility over tax decisions.

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The Great Compromise

The Origination Clause, sometimes referred to as the Revenue Clause, is Article I, Section 7, Clause 1 of the US Constitution. It states that all bills for raising revenue must originate in the US House of Representatives, but the US Senate may propose or concur with amendments, as with other bills.

The Origination Clause was part of the Great Compromise, also known as the Connecticut Compromise or the Sherman Compromise, which was an agreement reached during the Constitutional Convention of 1787. The Compromise defined the legislative structure and representation each state would have under the US Constitution.

The Compromise also addressed the issue of revenue bills, stating that they should originate in the lower house, and not be subject to amendment by the upper chamber. This was intended to ensure that the power of the purse is possessed by the legislative body most responsive to the people.

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The Supreme Court's role

The Origination Clause, sometimes called the Revenue Clause, is Article I, Section 7, Clause 1 of the U.S. Constitution. It states that all bills for raising revenue must start in the U.S. House of Representatives, but the U.S. Senate may propose or concur with amendments. This clause was part of the Great Compromise between small and large states. The large states were unhappy with the power of small states in the Senate, so the Origination Clause theoretically offsets this by giving the House of Representatives "power of the purse".

The Supreme Court has occasionally ruled on Origination Clause matters, adopting a definition of revenue bills based on whether the measure in question has revenue-affecting potential. This includes not only direct changes to the tax code but also any fees paid to the government that are not payments for a specific service and any change in import restrictions.

The Supreme Court has also provided insight into the process of a "pocket veto", which is when the President effectively vetoes a bill by taking no action. In the Pocket Veto Case (1929), the Court held that the determining factor is whether Congress has adjourned in a manner that prevents the President from returning the bill to its house of origin within the time allowed.

In addition, the Supreme Court has ruled on the constitutionality of Senate amendments to House-originated bills. In the 1911 case of Flint v. Stone Tracy Company, the Court affirmed the constitutionality of a Senate amendment that substituted a corporate tax for a House-originated inheritance tax. The Court found no constitutional impediment to this process because the bill had originated in the House and the Senate amendment was germane to the bill's subject matter.

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The definition of a revenue bill

The Origination Clause, sometimes called the Revenue Clause, is Article I, Section 7, Clause 1 of the U.S. Constitution. It states that "all Bills for raising Revenue shall originate in the House of Representatives". This means that any bills that include proposals to raise revenue must be introduced in the House of Representatives first.

The Origination Clause was designed to ensure that the power to make decisions about taxation rests with the representatives directly elected by the people. Before the Seventeenth Amendment was ratified in 1913, only members of the House of Representatives were directly elected by the people.

The Origination Clause does not prevent the Senate from amending revenue-raising bills or substituting other revenue-raising provisions. For example, in Flint v. Stone Tracy Co., the Senate amended a bill that originated in the House to replace an inheritance tax with a corporate tax. The Court found no constitutional impedient to this process because the bill had originated in the House, and the Senate amendment was relevant to the bill's subject matter and within the Senate's power to propose.

The precise definition of a "bill for raising revenue" has been the subject of debate and interpretation. The Supreme Court has ruled that raising money must be the primary purpose of the bill, rather than an incidental effect, and that the funds raised must be for general governmental expenses rather than a specific purpose. However, the House of Representatives has applied a broader standard, including any "meaningful revenue proposal" within the definition of revenue legislation. This includes direct changes to the tax code and fees paid to the government.

Frequently asked questions

A revenue bill is a bill that raises revenue, or in other words, a bill that levies taxes.

According to the Origination Clause, also known as the Revenue Clause, all revenue bills must originate in the House of Representatives.

Yes, the Senate can propose or concur with amendments to revenue bills, as long as the bill originated in the House of Representatives.

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